Geiger Counter (LSE:GCS) Beneish M-Score : 9.79 (As of Apr. 30, 2024)

View and export this data going back to 2017. Start your Free Trial

What is Geiger Counter Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 9.79 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Geiger Counter's Beneish M-Score or its related term are showing as below:

LSE:GCS' s Beneish M-Score Range Over the Past 10 Years
Min: -6.47 Med: 9.79 Max: 29.21
Current: 9.79

During the past 8 years, the highest Beneish M-Score of Geiger Counter was 29.21. The lowest was -6.47. And the median was 9.79.

Geiger Counter Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Geiger Counter for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1

0.528 * 1

0.404 * 1.0032

0.892 * 13.2847

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.0355

4.679 * 0.232938

0.327 * 0.8317

9.79

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was £0.00 Mil.
Revenue was £23.51 Mil.
Gross Profit was £23.51 Mil.
Total Current Assets was £0.01 Mil.
Total Assets was £98.05 Mil.
Property, Plant and Equipment(Net PPE) was £0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.00 Mil.
Selling, General, & Admin. Expense(SGA) was £0.45 Mil.
Total Current Liabilities was £0.27 Mil.
Long-Term Debt & Capital Lease Obligation was £10.78 Mil.
Net Income was £23.06 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £0.22 Mil.

Total Receivables was £0.00 Mil.
Revenue was £1.77 Mil.
Gross Profit was £1.77 Mil.
Total Current Assets was £0.25 Mil.
Total Assets was £74.83 Mil.
Property, Plant and Equipment(Net PPE) was £0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.00 Mil.
Selling, General, & Admin. Expense(SGA) was £0.94 Mil.
Total Current Liabilities was £0.18 Mil.
Long-Term Debt & Capital Lease Obligation was £9.96 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(0 / 23.514)	/	(0 / 1.77)
	=	0	/	0
	=	1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(1.77 / 1.77)	/	(23.514 / 23.514)
	=	1	/	1
	=	1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (0.012 + 0) / 98.052)	/	(1 - (0.246 + 0) / 74.825)
	=	0.999878	/	0.996712
	=	1.0032

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	23.514	/	1.77
	=	13.2847

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(0 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(0.445 / 23.514)	/	(0.944 / 1.77)
	=	0.018925	/	0.533333
	=	0.0355

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((10.78 + 0.273) / 98.052)	/	((9.963 + 0.178) / 74.825)
	=	0.112726	/	0.13553
	=	0.8317

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(23.06 - 0	-	0.22)	/	98.052
	=	0.232938

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Geiger Counter has a M-score of 9.79 signals that the company is likely to be a manipulator.

Geiger Counter Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Geiger Counter's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Geiger Counter (LSE:GCS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Geiger Counter Ltd (LSE:GCS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

GCL:UK

Address

31 Pier Road, Ordnance House, Saint Helier, JEY, JE4 8PW

Website

https://www.ncim.co.uk

Geiger Counter Ltd is a closed-end investment company. Its objective is to deliver attractive returns to shareholders principally in the form of capital growth.